Resist the Temptation to Chase Bond Yields

What should investors do to prepare for the Federal Reserve tapering this year?

GEORGE PAPADOPOULOS: Investors should not be worrying about matters they cannot control. The only constants in the markets are fluctuation and surprises. Positioning the bond allocation of a well-diversified portfolio toward short-term bonds and refusing the temptation to chase yield is not sexy but it will likely contribute to the well being of your investment portfolio over the long term.

Investors should have a financial plan in place that focuses on accomplishing cherished goals by means of a diversified low-cost investment portfolio that is rebalanced at set intervals.

George Papadopoulos is a fee-only wealth manager in Novi, Mich., serving affluent individuals and families. You can follow him at twitter (@feeonlyplanner), connect with him at Google+ or visit his firm’s website.